Government plans new company to regulate LPG prices

LAHORE: The government is planning to shift the responsibility for setting liquefied petroleum gas (LPG) prices from the Oil and Gas Regulatory Authority (Ogra) to a new company involving Pakistan State Oil (PSO), Sui gas companies and other oil firms to control market prices and curb illegal practices.

Under the proposed system, the new entity will determine the official LPG price for each month. Sales will be restricted to authorised outlets and designated pumps operating under government regulations.

The Petroleum Ministry has directed that all LPG distributors and retailers sell the commodity at the officially notified rates. Those found charging consumers above the prescribed prices will face strict action as the government moves to eliminate overpricing in the market.

The authorities have also introduced plans for a cylinder exchange system to reduce the risk of explosions and other accidents caused by unsafe LPG handling. Under this arrangement, consumers will exchange their empty cylinders for filled ones at retail outlets instead of getting their existing cylinders refilled at shops.

The government intends to allow LPG sales only in standard cylinders manufactured by Ogra-approved companies. These cylinders will be available in different capacities, including two, three and five kilogrammes.

Officials will also coordinate with manufacturers to ensure the availability of safe and affordable cylinders. The use of defective and non-standard containers will be prohibited.

Retailers found filling LPG into unapproved cylinders could face heavy fines and the sealing of their businesses.

Meanwhile, LPG Distributors Association Secretary General Rana Abdul Jabbar has offered the association’s cooperation with the government’s proposed measures, provided retailers are supplied with standard cylinders at subsidised rates.

He said the association opposed illegal LPG sales and was willing to support measures aimed at preventing accidents and protecting consumers.

Jabbar added that retailers also faced serious risks while handling LPG and did not want accidents to result in loss of life. He said the association had already instructed its members to avoid filling defective cylinders.

He further stated that the association would not defend any retailer found violating safety regulations. However, he urged the authorities to return pumps and other equipment confiscated during enforcement operations rather than destroying them.